Infinera Corporation (NASDAQ:INFN) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 05:00 pm ET

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Infinera Corporation (NASDAQ:INFN) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Infinera's Fourth Quarter and Fiscal 2019 Conference Call.

[Operator Instructions]

I would now like to turn the call over to Lauren Sloane, Investor Relations for Infinera. Lauren, you may begin.

Executive
Lauren Sloane

Thank you, operator. Welcome to Infinera's fourth quarter and fiscal-year 2019 conference call.

A copy of today's earnings and investor slides are available on the Investor Relations section of our website. Additionally, this call is being recorded and will be available for replay from the website.

Today's call will include projections and estimates that constitute forward-looking statements including but not limited to, statements about our business, plans including our product road map, sales, our growth, market opportunities, manufacturing operations, products, technology and strategy, statements about the current status of our integration plans and expected synergies and efficiencies, the impact of the coronavirus as well as statements regarding future financial performance in our first quarter and fiscal 2020 outlook. These statements are subject to risks and uncertainties that could cause Infinera's results to differ materially from management's current expectations. Actual results may differ materially as a result of various risk factors as included in our most recently filed 10-Q, as well as the earnings release and investor slides furnished with our 8-K filed today. Please be reminded that all statements are made as of today, and Infinera undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call.

Today's conference call includes certain non-GAAP financial measures. Pursuant to Regulation G, we have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our fourth quarter and fiscal-year 2019 earnings release and investor slides each of which is available on the Investor Relations section of our website.I'll now turn the call over to our Chief Executive Officer, Tom Fallon.

Executive
Tom Fallon

Good afternoon, and thank you for joining us today for our fourth quarter and fiscal 2019 earnings conference call.

I'll start with a brief review of our Q4 and year-end performance, share some highlights from this past year to read the opportunity we see as we launch into 2020. Nancy will then cover our Q4 and fiscal year results in greater detail and provide additional perspective on our financial outlook, with David joining us for Q&A.

2019 was a year of significant accomplishment in creating a new at-scale leader in the optical networking market. Our progress is marked by achievements in four key areas. First, we made significant improvements in our financial performance ending the year strong with solid Q4 results. Non-GAAP revenue for the quarter was $386 million, exceeding our guidance range as customer demands remained robust in the quarter. This represents revenue growth of 15% year-over-year and 18% quarter-over-quarter. In Q4, non-GAAP gross margins came in at 35% and non-GAAP operating margin improved to a positive 2.3% as we achieved our goal of exiting 2019 with non-GAAP operating profitability for the quarter.

For the year, our non-GAAP revenue was $1.32